You may not want to think about how many years you have left or fix a projected date of your demise, but be assured that insurance companies, pension funds, the government, and, for reverse mortgages, lenders all have a pretty specific idea of when they think you’ll be gone. Actuarial science is big business and the statisitical analyses and computer models that underly these financial transactions are impressive.

From the individual’s standpoint, the issue is fairly simple: live longer than “they” assume you will and you come out a winner. Further, despite their impressive actuarial tools, you have far better information about your life expectancy than any insurance company or reverse mortgage lender. Only you know the full story about your family medical history or about how well you take of yourself.

Life expectancy is the most important consideration for any type of retirement planning – including reverse mortgage planning. But many – perhaps most – reverse mortgage borrowers enter into transactions without giving adequate thought to the subject.

Combine your personal knowldege with the helpful tools and information available via the internet and you have the ability to assess your life expectancy with a high degree of sophistication. One excellent tool is the Longevity Game available from the Northwestern Mutual Finance Network. Work through the twelve steps of this interactive calculator with honest answers and you will have a reasoned basis to judge whether the high costs associated with a reverse mortgage can be effectively amortized over your expected remaining life.

Finally, one unfortunate fact about reverse mortgage industry practices that deserves mention is that the actuarial life expectancy tables currently used are based on general population life expectancies. Yet many people most in need of reverse mortgages are impaired seniors with a shortened life expectancy due to chronic illness. Unfortunately, these borrowers enter reverse mortgage transactions at a distinct disadvantage.

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A Few More Related Articles of Interest:

Is a Reverse Mortgage Right for Me? New Guide Available

1. Am I the Right Age for a Reverse Mortgage?

2. How long do I expect to stay in my home?

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Using a Reverse Mortgage to Get Out of Tight Spots